Friday, 29 December 2017

Investing in LongTerm?

Know your Benefits of long term investment

Reduction Of The Impact Of Price Fluctuations:

When you invest for a long term, your investments are less affected by short term volatility.

The market tends to address all factors that keep changing in the short term. So a person involved in long term investment will not be affected as much by short term instability due to factors such as liquidity, fancy of a particular sector or stock which may make the price of a stock over or undervalued.

In the long term, good stocks which may have been affected due to some other factors (in the short term) will give better than average returns.

Long-term investors can ride out down markets without dramatically affecting his or her ability to reach their goals.

BENEFITS OF LONG TERM INVESTING

Short term investments may have the potential to give you quick bucks, but long term investment has several significant advantages.

Advantage 1 :

Compounding: Time can be investor’s best friend because it gives compounding time to work its magic. Compounding is the mathematical process where interest on your money in turn earns interest and is added to your principal.

Tuesday, 26 December 2017

Select while the option

Select while the option

Selecting options - Dividend or Growth - becomes very important when you are defining the purpose of your financial goal. If you aim to fulfill a goal where you need a huge capital, you should opt for growth option whereas if you need some profits from time to time as and when a company gains from the market, you should select dividend option.

“Many mutual funds choose to distribute their profits to shareholders in the form of dividends, while others choose to use their profits to reinvest in the growth of the company. Your selection of dividends or growth plans should be based on how often you need the money,”.

Monday, 25 December 2017

One needs to check the time horizon of their financial goal and invest accordingly. However, there is no hard-and-fast rule, but in general, as you get older and closer to retirement, you should reduce your exposure to stocks in order to preserve your capital. “As a rule of thumb, subtract your age from 110 to find the percentage of your portfolio that should be in stocks, and adjust this up or down based on your individual willingness to take risks.

Confused About Which Fund To Invest In? Mutual Funds Just Got Easy

All mutual fund schemes within a fund house will need to be appropriately distinct from each other in terms of strategy, asset allocation, etc.

There are two basic ways to earn money — by working and by making your assets work for you. The latter is an idea that each one of us thinks about once we start earning — choosing the right investment strategy assumes paramount importance. As is has been rightly said by Ben Graham, noted American investor & ‘the father of value investing’, "The individual investor should act consistently as an investor and not as a speculator."

In India, the influx of the domestic investors' money in equity markets (mutual funds) has been increasing significantly over the past few years.The Mutual Fund Advisor is place a big role for this equity investment success.

For those still in woods, a mutual fund is a professionally managed investment scheme run by an asset management company that accumulates people’s money and invest them in stocks, bonds and other securities.

You can start investing in mutual funds from as little as Rs. 500. Should you need help finding the right fund, a simple Google search for a good largecap equity funds would throw up numerous possibilities.

But unfortunately, for many first-time investors, having to choose from the plethora of equity funds, all claiming to outperform the index and the benchmark, is like finding a needle out from what seems like a haystack of schemes available and registered with the Securities & Exchange Board of India (SEBI). To simplify this, SEBI on October 6th, 2017, released new guidelines on categorizing mutual funds, asking funds to classify their schemes under five clearly defined categories.

These categories are classified as Equity Schemes, Debt Schemes, Hybrid Schemes, Solution Oriented Schemes and Other Schemes. Fund houses will be allowed to have one scheme in each category, except for Index funds/ETFs tracking indices, fund of funds and thematic schemes investing in different sectors.

Additionally, all mutual fund schemes within a fund house will need to be appropriately distinct from each other in terms of strategy, asset allocation, etc. If a fund house currently has more than one fund in the same category, they will necessarily need to be merged into one. As of now, fund houses will have to analyze each of their existing schemes, obtain approvals from their trustees and submit their proposed course of action (whether a scheme will be merged, wound up or its fundamental attributes will be changed) to the regulator within the next two months. After SEBI issues its observations on the fund house's proposals, the necessary changes will have to be carried out within three months.

This move by SEBI is clearly in favour of investors — by standardizing mutual fund categories, new fund offerings are likely to come down, which will clear the clutter and make it easier for investors to compare & identify the right financial instrument to invest in. Comparing funds of a particular category will now be easier, given that there could be similar kind of portfolio with more or less the same holdings but with different allocation. Also, merging of the funds will lead to a reduction in expense ratios which is in turn is beneficial for investors.

This move will also test the fund managers stock picking skills since the basket of funds to choose from is now common. For example, a fund manager of a “large cap fund” could have an allocation in the midcap stocks in order to generate alpha returns. Though this could yield higher returns, it is also important to note that it increases the risk of the fund, thereby increasing the risk for the investor who may not have the appetite for midcap exposure. Although at an overall level, the equity allocation for an investor does not change, what used to change was the sub-allocation towards mid-cap and small cap in his portfolio via various funds held by him. Thanks to the new circular, the fund manager is now restricted in terms of the exposure he can have in each of the categories, thereby bringing the risk down.

This is indeed great move benefitting investors. Fund houses offered numerous schemes under the same category and made it really confusing for the investors to select from a list of multiple large cap, multi-cap or midcap funds from the same fund house. For a fund manager, this move could limit their freedom by forcing them to exit quality stocks and abide by the norms on market capital holdings. But overall, the new classification is considered a step in the right direction as it will bring clarity, uniformity among mutual funds and make the life of the Indian investor simpler.

If you looking for the best Mutual Fund Advisor,Our KKP Capital MK Prabhagaran is the successful Guider in mutual fund investments and online share trading.For more details to click on their website===>www.mkprabhagharan.com.

Investing In Valuable Intangibles

Keep Updating your Personal Finance Basics-It's an investment that will deliver bountiful returns.This aspect of personal Finance is Often neglected.Yet it is a Crucial Foundation that determines whather your complete Financial Planning Exercise Will Be Successful or not.Updating Personal finanace basics does not necessarily mean that oyu rush around finding out about the latest Mutual Fund Offerings,the upcoming IPOs and lucrative debt products.It's more about understanding the theories or funds behind personal finance,What are the latest insights on Successful Planning,how to gauge the amount of investment you require,how to determine the right Combination of debt and equity that you must hold at a Particular Point of time,ect.Choosing the right prouducts Will follow as a matter of fact.All this can be assimilated from books or the internet,or watching simple but informative business television channels.In the words of the Wise and enduring 21st Century grandma,"never think twice before Spending on Fruits and books".

Friday, 22 December 2017

Risk Factor Should Always Be Considered

Risk factor should always be considered

If you are a new investor, you need to know that there are several types of mutual funds available in India based on catering one’s risk appetite. One should select the scheme as per their risk-taking capacity.

Thursday, 21 December 2017

Investing in mutual fund for the first time?

Investing in mutual fund for the first time?

Keep Documents Handy

Every transaction you make needs to be well documented. The first thing you need is to become KYC compliant. This is nothing but a due diligence of your personal details like the submission of the address proof, your photograph, date of birth certificate and your PAN card. Gautam added that you need to fill up the form of respective scheme where you are going to make your investments. If you have a PAN card, you are qualified to invest in Mutual Funds. “An Aadhaar card can make account/folio creation easy through completely paperless e-KYC, else one-time paper KYC process can also be done,”.

Wednesday, 20 December 2017

Mutual Fund Ratings At Your Service

Most of us find it quite simple to understand what is meant by rating a fixed income product such as a fixed deposit or a bond.Perhaps that is because we perceive these as comparatively static in nature and therefore, some ranking can be applied to them.However,there are a number of websites and rating agencies that offer rankings on mutual funds.The Mutual Fund Advisor ranking methodologies developed by these agencies are usally based on global best practives and have gained acceptance among investors and the mutual fund companies themselves over the years.In general, the criteria for rating include the performance of the fund,in terms of the risk adjusted returns that it delivers.It also captures other features that impact future performance such as industry concentration,company concentration,liquidity,etc.Naturally,the type of mutual fund that you decide to invest in chould depend on your requirements but refering to rating helps you to choose between seemingly similar schems.So don't let therating guide your choice;they are only there to reaffirm or support it.

SIP And The Savings Habit

There's an old saying,"Earning money is easy; Saving it is What makes the difference between financial success and failure." Systematic Investment Plans from mutual funds and the advantsge of systematic investment to give investors an excellent investment option.On theone hand,they offer you a diversified portifolio which is structured,monitored and revised from time to time by a team of experts.At the same time,you effortlessly benefit by developing a savings habit by comfortably putting aside some amount of money every month.Last butnot the least,SIPseliminate the hassle of timing the markets and perform better than one time investments under most market conditions.Make the most of these.

If you looking for the best Mutual Fund Advisor,Our KKP Capital MK Prabhagaran is the successful Guider in mutual fund investments and online share trading.For more details to click on their website===>www.mkprabhagharan.com.

Investing in mutual fund for the first time?

Making mutual fund investing is one of the most favored ways to create wealth, especially for beginners who want to have exposure to financial markets.

Mutual funds are a collection of stocks and bonds managed by investment professionals.

If you are planning to start investing in mutual funds be prepared to take these important broad steps – having necessary documents in hand, knowing the purpose of investment and selecting the right mutual fund schemes.

However, beginners in mutual fund investing need to know few more things to help them take a right decision.

1. Know your purpose of investment

The purpose of doing an investment should be well defined – buying a car, buying a home, child education planning, wedding planning, retirement planning, etc. Even if you don’t have any goal, you should be clear on how much wealth you are targeting to create and in what time frame.

“Always decide the “purpose of saving” and “year when you need your money back”.